Showing posts with label tax. Show all posts
Showing posts with label tax. Show all posts
Friday, August 18, 2017
Corporate Taxes None or Flat Tax Recommendation
Corporate Taxes None or Flat Tax Recommendation
I have written quite a bit about unfair tax breaks and incentives such as TIFs that have benefited some businesses over other businesses, especially large businesses over small businesses. I stand by those ideas.
However, I have not said much about corporate taxes per se. On that subject I have mixed feelings. In general I don’t see any value in corporate taxes. And, if there are corporate taxes I think they should be flat taxes meaning every business should pay at the same rate. While I think use taxes, taxes for roads, water, infrastructure and the like should be paid by businesses and corporations as a part of the price of the product produced. But taxes such as school taxes and perhaps property taxes do not have to be part of the mix.
Business taxes are in general just pass along taxes. If you raise the tax, the business just passes that tax along to the buyer so in essence that type of tax is a regressive tax depending upon the product. Thus everyday products that everyone needs place a higher burden on folk with lower incomes as it takes a larger percentage of their income to pay these taxes. So food, shelter and clothing it seems to me should not be taxed or at least taxed at a flat rate. But when it comes to luxury items or homes of a very high value, sock it to them with progressive taxes. The people who pay those taxes can afford them. If they still made Hummers* I’d say tax them at a 90% rate and publish their pictures names, addresses and phones numbers as immoral over consumers. Well, that may be a bit rash.
Another example would be to pay no or little tax on a Timex watch but tax a Rolex at a very high rate.
Corporate taxes the way they exist now seem like political footballs. States play games with each other about trying to lure businesses away from each other with the usual result the regular state taxpayers pays a premium for this shopping. Or some municipalities and states see them a cash cows for their projects. Either way, the common good is not served.
Of course I realize the real corporate giants just cheat and hide their money’s and profits in foreign countries.
A post script thought. Why should any state or municipal money be used for sports stadiums? They way it works now is owners can get tax dollars to build a stadium, then turn around and sell that stadium and make out like bandits without contributing a thing. But that likely goes against the popular grain and folk who come out against public funding for public radio and TV would be for subsidizing programs that pay some players ridiculous salaries, others not enough and to view rather barbaric games that would be illegal if we forced people to play them. At least here in Wisconsin fans seem to happily tax themselves to go freeze and drink beer in a circle.
Now, I wonder whom else I can offend?
*Did you know there was a study done by the Journal of Consumer Research that says Hummer drivers believe they are defending America’s frontier lifestyle by owning and driving Hummers. Yep that trophy wife driving herself to the high-end grocery store is making a real case for patriotic American individualism. I rest my case.
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Wednesday, April 19, 2017
David M Walker assesses the tax tea party movement
David M Walker assesses the tax tea party movement
David M. Walker served as the comptroller general of the United States and head of the Government Accountability Office (GAO) from 1998 to 2008. In these positions, he was considered to be the chief accountant of the U.S: federal government.
In the May 21, 2010 Jacksonville.com blog post, "Former U.S. Comptroller General (an accountability guy) on the tea party," David Hunt provides David Walkers reply to a question about the tax tea party movement in the United States. According to Walker:
"On one hand, I share a lot of their concerns. On the other, I think we have to realize that the answers to our problems are not in the extremes. Theyre not in the far left or far right. Theres a sensible center. While you want to change direction, you dont want to polarize Washington into further extremes. I understand public discontent, but I want it to be informed and constructive - not destructive - and not cause an increase in ideological divide. ... There is no party of fiscal responsibility. Neither Republicans or Democrats have proven that to us when they were in power. Maybe the mantra is "when in doubt, throw them out," but there needs to be an informed view."
Walker earned a bachelors degree in accounting from Jacksonville University in 1973. Since March 2008, Walker has been the president of the Peter G. Peterson Foundation where he tries to educate the public on the need for fiscal discipline and possible ways to achieve it. Walkers 2010 book, Comeback America: Turning the Country Around and Restoring Fiscal Responsibility provides elaboration of Walkers ideas.
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